Parimutuel betting systems allow for a combination of bets taken for an event to be put in a single pool. Unlike other win/lose wagering systems, such as fixed-odd betting, in parimutuel systems, the payout is not determined until the pool is closed, which typically occurs when or shortly before the event begins. Parimutuel betting systems are designed around shifting odds, which are continually changing until betting for an event ends. Each payout for each individual bet is determined as a share of all the available bet amounts in the pool. A winning wager in a parimutuel system receives a payout from the portion of the pool that is made available to pay winning wagers (as opposed to being kept by the casino), which payout is proportional to the ratio of the amount of money wagered by the individual to the overall amount wagered by the winning bets.
In parimutuel betting systems, the role of and risk to the operators (the “house”), which may be, for example, a casino, sportsbook organization, racetrack operator, or the like, is minimized because bettors are placing wagers against other bettors, rather than against the house. Thus, parimutuel systems may eliminate any tangible risk for the house, allowing the house to simply take a cut of the entire betting pool without regard to the outcome of the event, such as an athletic competition, on which the wagers are placed.
In some betting systems, bettors are given the option of betting a point spread, where a team is favored by a fixed number of points over another team. Point spreads can be construed by a bettor as a predictor of victory, and also serves to equalize placed bets on either game participant. For example, a team may be favored, with respect to a game, by 5 points over its opponent. Betting a point spread can have multiple outcomes: a team wins and covers the point spread, a team wins and does not cover the point spread, a team loses a close game to cover the point spread, or a team loses and does not cover the point spread. Traditional parimutuel systems would not allow for combining point spread bets with bets specifying a team selected to win without specifying a point spread (“picking straight up” or “moneyline”) into a single pool, as point spread bets have more outcomes than straight bets, and, unlike straight bets, have winning outcomes which are not mutually exclusive. Traditionally, point spread bets are not made using parimutuel systems. Thus, there additionally remains a need for a parimutuel system that may accommodate point spread wagers in a single pool, thereby removing any additional risk to the house.